If you’re like most people, you probably don’t know how to pay yourself as a business owner.
Being a small business owner, it’s important to know how to pay yourself. Otherwise, you could end up paying more taxes than you need to. But don’t worry! CPA4IT can help make sure you’re getting the most out of your business and taking home what you deserve. We’ll work with you to ensure you’re compliant with all tax laws and regulations, and that you’re maximizing your earnings.
Here are a few things to keep in mind when paying yourself as the owner of a small business:
1. Take advantage of payroll tax deductions.
As the owner of a small business, you’re probably used to getting a paycheck every week or two. However, did you know that you can actually deduct payroll taxes from your income? This can save you a significant amount of money in the long run.
2. Invest in a retirement plan.
One of the best ways to save for retirement is to invest in a retirement plan, such as a 401(k) or an IRA. By doing this, you can reduce your taxable income and put more money away for retirement.
3. Consider a health savings account.
If you have a high deductible health insurance plan, you may be eligible to open a health savings account (HSA). Contributions to an HSA are tax-deductible and the money can be used to pay for qualified medical expenses.
4. Make estimated tax payments.
If you don’t think you’ll owe taxes at the end of the year, you may be able to make estimated tax payments throughout the year. This can help you avoid penalties and interest charges on your taxes.
5. Keep good records.
It’s important to keep track of all the money you earn and spend as a small business owner. This will help you stay organized and make it easier to file your taxes. As Elite QuickBooks pro-advisors, we will help you connect your bank accounts, credit cards, PayPal, and more to automatically download all your income and expenses in the best prices!
Paying yourself as a small business owner doesn’t have to be complicated. Just remember to take advantage of payroll tax deductions, invest in a retirement plan, and keep good records through the help of a seasoned expert. By doing these things, you can save money and stress, come tax time. Here at CPA4IT, we can help make sure you’re taking all the necessary steps to properly pay yourself. Our experts can provide guidance on how to set up your payroll and make estimated tax payments. Book a FREE consultation with our experts today to learn more!